India Shared Mobility Market Trends, Growth Demand, Opportunities & Forecast To 2025

Posted November 16, 2021 by Rahul_Gautam

Shared Mobility Services Making Indian Cities Greener
Shared mobility services have become very popular in India over the last few years, and with the increasing focus of the government on mitigating the environmental degradation caused due to the extensive usage of oil and gas-powered vehicles, this trend is expected to continue in the coming years. Vehicular emissions are one of the primary factors responsible for the escalating air pollution levels and rapid environmental deterioration. Due to this reason, the government is enacting stringent regulatory policies to reduce the generation of vehicular emissions.

In addition to implementing such policies, the government is also providing subsidies and other financial incentives for encouraging the adoption of eco-friendly vehicles such as electric vehicles, for commercial usage. For example, under the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles II (FAME II) scheme, the Indian government is providing incentive plans for encouraging the deployment of electric vehicles for commercial purposes. This is fueling the usage of electric vehicles by shared mobility service providing companies in the country, thereby driving the expansion of the Indian shared mobility market.

Apart from reducing the air pollution levels, shared mobility solutions also solve the problem of road congestion in urban areas, which is rapidly becoming a major issue in the country. Due to the booming population and surging number of daily commuters, urban areas are witnessing road congestion, particularly in peak hours. This is causing long traffic jams, which is subsequently causing huge losses to the economy. As a result, many organizations are focusing on developing alternative mobility options.

Furthermore, in many urban cities such as Mumbai, Bengaluru, and Delhi & NCR, the authorities are taking initiatives for encouraging the adoption of shared mobility services in order to reduce the number of automobiles on roads. This is massively propelling the industry growth, as a result of which, the market revenue is expected to rise from $1,025.8 million in 2019 to $3,952.8 million by 2025, while the market will advance at a CAGR of 56.8% from 2020 to 2025 (forecast period), as per the estimates of the market research company, P&S Intelligence.

Ride sharing, two-wheeler sharing, car rental, ride hailing, bus/shuttle service, and carsharing are the major shared mobility services available in the country. Out of these, the demand for ride hailing services was found to be the highest in the country in 2019, because of the development of various advanced technologies by ride hailing service providers in the years gone by for improving customer experience and attracting a large number of customers.

In India, the popularity of shared mobility solutions was the highest in the southern region during the last few years, on account of the presence of a larger number of working individuals in the southern cities such as Bengaluru, Hyderabad, and Chennai. In the forthcoming years, the demand for these services is predicted to surge sharply in the east region. This will be because of the fact that the shared mobility service providers are rapidly setting up their offices in the eastern states such as Assam, Odisha, and West Bengal, owing to the burgeoning demand for their services in the region.

Hence, due to the soaring number of daily commuters, increasing road congestion, and rapid environmental degradation, the demand for shared mobility solutions will surge in India in the upcoming years.
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Issued By Rahul Gautam
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Categories Automotive , Business , Industry
Tags india shared mobility market , india shared mobility market demand , india shared mobility market fututre , india shared mobility market share , india shared mobility market size
Last Updated November 16, 2021